Liability for payment of advance tax
[Section-403 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 403(1) of Income Tax Act 2025
403(1) Advance tax shall be payable during any tax year in respect of the current income of the assessee, as per the provisions of this Part.
Section 403(2) of Income Tax Act 2025
403(2) For the purposes of this Part, “current income” means the total income of the assessee which would be chargeable to tax for that tax year.
Section 403(3) of Income Tax Act 2025
403(3) The provisions of sub-section (1) shall not apply to an individual resident in India, who––
- 403(3)(a) does not have any income chargeable under the head “Profits and gains of business or profession”; and
- 403(3)(b) is of the age of sixty years or more at any time during the tax year.
FAQs on Section 403 of Income Tax Act 2025
What is advance tax under the Income Tax Act, 2025?
Advance tax refers to the tax payable during any tax year in respect of the current income of the assessee, as per Section 403(1).
When is an assessee liable to pay advance tax?
An assessee is liable to pay advance tax during the tax year in respect of their current income.
What does “current income” mean for the purpose of advance tax?
As per Section 403(2), “current income” means the total income of the assessee which would be chargeable to tax for that tax year.
Are there any exemptions from the liability to pay advance tax?
Yes, individuals resident in India who (a) do not have any income chargeable under the head “Profits and gains of business or profession”, and (b) are 60 years of age or more at any time during the tax year, are not liable to pay advance tax under Section 403(3).
Does advance tax apply to all categories of assessees?
Advance tax applies to all assessees unless specifically exempted under Section 403(3).
Is a senior citizen with only pension income required to pay advance tax?
No, if the individual is 60 years or older and does not have income under “Profits and gains of business or profession”, they are exempt from advance tax liability.
Does having business or professional income affect advance tax liability for a senior citizen?
Yes, if a senior citizen has income under the head “Profits and gains of business or profession”, they are liable to pay advance tax regardless of their age.
What age is considered for exemption from advance tax for resident individuals?
The exemption applies if the individual is 60 years of age or more at any time during the tax year.
If an individual turns 60 on the last day of the tax year, are they exempt from advance tax?
Yes, the exemption applies as long as the individual is 60 years or older at any time during the tax year.
Does a non-resident individual over 60 years of age get exemption from advance tax?
No, the exemption under Section 403(3) is available only to individuals who are resident in India.
Are companies or firms eligible for exemption from advance tax under Section 403(3)?
No, the exemption is specifically for individual assessees who meet the conditions under Section 403(3).
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